Cheaper imports and the persistently high cost of production have India's soda ash manufacturers worried. Demand in the country in 2012-13 showed healthy growth of 10-11%, led by growth from the detergents and chemicals segments (flat glass and container glass witnessed below-par growth). However, a large part of demand was met by rising imports, up to 15-20% to around 650,000/tonnes. Prices of soda in India have been largely stable since October 2012. Around 80% of the country's soda ash making capacities are in Gujarat. "For every tonne transported from Gujarat to the southern and eastern markets, the logistic costs are around US$ 75-80/tonne. Whereas for the Chinese and EU manufacturers, logistic costs are are lower, at US$ 35-40/tonne to these ports," said a senor official in Gujarat Heavy Chemicals Ltd. "Despite this, we are producing to capacity." Recognising the problem, the government has imposed anti-dumping duties on some exporting countries. A final notification on Russia and Turkey is pending. "Costs have gone up by 5-10%, while the companies have been unable to pass these onto consumers," said an industry source adding, "The impacts on margins will be high this year."
